If you’re new to the world of cryptocurrency, you may have heard of utility tokens and security tokens. These tokens perform several functions, some similar and some not. During trade and issuance, for instance, their procedures and uses vary. Security tokens are distinguished uniquely from utility tokens.

But what do these terms mean? What’s the difference between a token and a coin? What’s the difference between security and utility tokens, and how are they used? Keep on reading to learn about the similarities and differences between the two and their role in the ever-changing world of blockchain.

What Is a Token?